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UK sets $1.37 billion for COVID financial firm collapses

Christian Fernsby |
Britain’s scheme for compensating consumers hit by financial company failures has set itself a billion-pound ($1.37 billion) budget for the coming year to cope with a likely surge in collapses due to COVID-19.

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The Financial Services Compensation Scheme’s (FSCS) budget of 1.04 billion pounds for the 2021/22 financial year that starts in April.

The FSCS also said it would add 78 million pounds to the current year’s budget due to more firms failing, pushing the total for 2020/21 to 700 million pounds.

The FSCS, which is financed by a levy on financial firms, also expects more claims for complex pension advice, and further failures in operators of self-invested person pensions (SIPPS).

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